SCOTLAND'S First Minister Nicola Sturgeon has been slammed over a new 'Sharia compliant loan scheme’ that allows pensioners get into debt in exchange for care services in their homes.

The shocking policy, which the SNP Government charges an astronomical 12 per cent fee to administer, is causing uproar across the country and has been compared to a "state sponsored banking scandal."

Despite earlier claiming that "as a society we owe an enormous debt of gratitude to our older people" Ms Sturgeon's Government is now putting those older people into debt so they can receive care services if they need it.

Irrespective of how much National Insurance they have paid over the years, the scheme targeted at the over 60's encourages pensioners to mortgage their home up to the value of £30,000, even if they are living on basic pension.

And bizarrely the Government is denying the equity grab is a "loan" despite the marketing material using the word a total of 74 times in just one piece of official literature instead calling it a “limited equity stake”.

The proposals are targeted towards individuals who do not qualify for statutory assistance but the Scottish Government also says it does not take into account their income when deciding who qualifies.

The Government also wanted to make the scheme opened to the disabled but shelved the plans because the idea was: "limited by the much lower likelihood of them having sufficient equity in their property".

Now Ms Sturgeon, who recently fled her constituency office after it was reportedly plagued by rats, has been blasted by campaigners for her "Help to Adapt" scheme which was made possible thanks to the Co-operative and Community Benefit Societies Act 2014.

The Government has even made the scheme “Sharia compliant" in a bid to make sure that it will be implemented in the Muslim community, to demonstrate Ms Sturgeon’s resolve.

And they have revealed they consulted the Islamic Bank of Britain to ensure the scheme was Sharia compliant to "advance equality of opportunity for Muslims."

The pilot proposal states: "It has informed a decision to run the scheme without any means testing and resulted in the re-naming of the scheme to clearly flag to older Muslims and the wider Islamic community that it is Sharia compliant.

"The age criteria for participating in the pilot, 60 years and over, was examined as part of the Equality Impact Assessment.

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Ms Sturgeon's then majority pushed through the bill that allowed the initiative in 2014

"A decision has been made to retain a focus on older people, as the scheme's scope to provide adaptation solutions to younger disabled households would be limited by the much lower likelihood of them having sufficient equity in their property."

The “loan” scheme is being rolled out in 12 of Scotland's 32 local authorities and recommends that “loans” of up to £30,000 are taken in the name of the person who owns the property.

The organisation appointed to manage the scheme is Link Group Limited run by Craig Sanderson in Edinburgh who also provide "social housing."

What happens to the money once its approved is unknown and who the bankers are involved in the behind the scenes deal is not transparent from Scottish Government documents or the information contained on the managing agent's website.

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The initiative was pushed through the Parliament by Alex Salmond and Nicola Sturgeon

Who say: "Help to Adapt is a Scottish Government pilot scheme available to homeowners, aged 60 or over, regardless of income, who have significant equity in their home, e.g. any remaining mortgage would be less than 20 per cent of the value of the property.

"There are no monthly interest charges or compound interest payments.

"The loan is repaid when the owner sells the house, dies or the home is no longer needed.

"There is no minimum loan level, the maximum loan is £30,000.

"There is a project management fee of 12 per cent which goes towards the service you will receive from the Help to Adapt team.

"Because the loan will be secured in your property, you will need legal advice about this and you can, if you wish, also add this cost to the loan.

"Apart from no interest charges, you as the homeowner are protected in two other ways: if the property value falls, the amount repayable would reduce; if the property value increases, the amount repayable would be capped so you would not pay back more than the average rate of borrowing."

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Ms Sturgeon took time out of her schedule to visit a private safety deposit box company

Campaigner Eben Wilson of Taxpayer Scotland has slammed the scheme insisting the Government is not being transparent and he has accused them of being involved in a "state sponsored banking scandal."

He said: “The Scottish Government appears to have decided to become a banker offering very expensive deals to those they cannot support because the state has run out of money.

"It certainly makes a change from promising the Earth and then stinging taxpayers to pay for the out of control spending and debt interest payments that follow.

"Governments are hopeless at doing business and always have huge costs when they try; this 12 per cent fee is a shocker, no doubt there will be some highly paid professional advisers coining it large to advise them how best to take money from the vulnerable elderly.

“We are reaping the result of years of socialism here, they say dignity and respect for those in need is their aim, but it seems that they have fleeced taxpayers with their monopoly control of the health, welfare and pension systems to the point where all they can think of is to claw back our assets and make us wards of a state sponsored banking scandal.

“You have to wonder if Sharia compliance is mere pandering to political correctness.

"It tells us that they appear not to be prepared to defend the traditions of property and law that define our Scottish heritage.

"One hopes they do not fall foul of the courts.”

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Last year Ms Sturgeon believed there would be a hung parliament in the UK

Ms Sturgeon, who campaigned in Glasgow's mosques during the elections, has approved a decision to market the scheme so that it is Sharia compliant, despite the fact that its laws don't apply in the UK.

Ukip MEP Jane Collins slammed the proposal by the First Minister saying it was "divisive."

She said: "We should all be fostering community relations by treating people equally not creating a chasm for resentment.

"The administration costs are also appallingly high: is that for the SNP to fix the huge black hole in their finances because they can't add up properly or is there an extra cost to make this scheme 'Sharia compliant'?

"How anyone can think that being ruled by the SNP is better than a Westminster government outside of Brexit is beyond me."

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The Scottish Government is creating a Sharia home 'loan' scheme to make pensioners pay for care

Just five months ago when campaigning for votes Ms Sturgeon said she would protect pensioners.

She said: "The SNP has already done a lot for senior citizens.

"And if I am re-elected as First Minister I will make sure that their needs are at the forefront of the next Scottish Parliament so that we deliver an even better, fairer deal for all our older people.

"We will continue to protect key social benefits and free personal and nursing care and will build on these gains of devolution with the new powers coming to Scotland."

The Scottish Government said: "This is not a commercial loan.

"It is a limited equity stake which is secured against the property and is normally repaid once the person dies or the property is sold.

"The Scottish Government will take into account any spouse or vulnerable adult who shared the house with the original homeowner on a case by case basis.

"The Scottish Government corresponded with the Islamic Bank of Britain to ensure the scheme was Sharia compliant and advance equality of opportunity for Muslims."